Buy and hold investors in small caps might wish they could be in limited partnerships instead and not be on the stock market. A partnership holding would be difficult to sell but not valued by the stock market. Of course there are master limited partnerships on the stock market. They pay 90% of earnings as a dividend.
Gosh, anyone not familiar with underground mining go find the June article about PLG on the biv website.
GUYFF is starting up 194,000 ounces of yearly production at a cost of $527 an ounce. The market price of the company is $483 million.
PLG is starting up 250,000 ounces of yearly production at a cost of $630 an ounce. The market price of the company is $222 million. But PLG also has a larger future project.
Actually, 250000 ounces per year at $990 an ounce and at a 10% after-tax profit margin seems to support the current stock price at a P/E of 10.
So the price of precious metal is important. And the development of the second mining operation is important.
A reverse split is not needed. The stock can reach a dollar within a year. Basically, production of 250000 ounces per year is expected.
Also, China setting its currency lower is supporting precious metal prices.
I mean that I notice Newmont because it's a major precious metal miner that is in the S&P 500.
Better yet, predict that older lower margin mines will be closed and find miners that only have newer higher margin mines.
They can benefit on labor costs because of the strong dollar versus the rand. That assumes that they are not hedging labor costs by holding the rand.
They can benefit on oil costs by not hedging the upside of oil. Well, put the oil hedge position in place at $38 a barrel and not at $48 a barrel.
I've also said that they can draw 5% interest on their cash by putting it in the rand. That assumes hedging the rand deposit !
Gosh, Newmont keeps setting new 52-week lows. I look at Newmont because it's also in the S&P 500
That's a childish response.
I don't buy computers by the pound and no one sells computers by the pound.
But the weight of a mobile computer is an issue.
I went looking for a Win 7 laptop with a weight of less than three pounds:
Lenovo ThinkPad X1 Carbon
2.87 pounds weight
HP EliteBook Folio 1020G
2.68 pounds weight
I suppose there are some good examples of the Internet of Things but:
I don't need my house thermostat connected to the internet. I wouldn't mind if it took into account the outside weather to make a comfort level.
Also, I would like a thermostat mounted in the hallway for my hot water heater that is in the basement.
Continuing, I'm not interested in the wind direction and speed for my city but for outside my house. Basically, a tornado warning.
So I'm more interested in systems for the house than internet connections for the house.
The bid/ask on the gold spot market is currently 1094.50 / 1095.50 .
That's off the recent lows and so those recent lows might hold.
In fact, the dollar can't just endlessly go up but will fluctuate.
And this indication of older lower-margin mines being closed can add support to the precious metals market.
It does look like the Gold ETF is underperforming the spot market.
The third largest platinum miner cut production by about 10%.
Miners cutting production can support precious metal prices.
But when buying a miner take into account the percentage of production from older lower margin mines.
The South African rand is down on fewer jobs while the Australian dollar is up on gold showing support
And that's my total plan for MS ?
No, there's several more things. Here's an example:
A Win 12 TS desktop configuration is featured whereby the display goes to the main monitor but also to a second 8" monitor. That second monitor is a touch screen monitor and can be pulled close to a computer user that is sitting back from the main screen.
Except that MS replaced "new coke" with "new new coke".
My plan for MS:
The mobile phone becomes Intel/Android.
Win 10 becomes Win 12 TS. Win 12 TS is for PC tablets and retail point-of-sale computers.
Win 7 becomes Win 12. Win 12 makes less use of processor multi-threading and is less draw on processing power.
The Surface goes to the Intel Atom processor which it did.
The Surface Pro keeps a more advanced Intel processor which it will.
And then a high priority development, an 8" PC tablet with full Win 12 TS operating system is also a mobile phone
They're basically still suggesting that Win 10 on a phone and Win 10 on a PC computer is the same thing. That's the problem. The consumer is insulted by something claiming to be the full operating system when it is not.
The problem has be drastically reduced since the Surface 3 has gone to the Intel Atom processor. However, the phone OS is available for tablets up to an 8" screen size. Also, Win Phone 8.1 is now called Win 10 Mobile.
Well, the other problem is that computer users sitting at a desktop might not want a touch screen operating system. Retail point-of-sale computers could use a touch screen.
Finally, a Win 10 sale on a PC might be a Win 7 installation by the computer maker
Any computer that is used while the user is standing-up, should have a touch screen interface.
That could be a lot of computers.
But when the computer is used with the user is sitting-down, then the computer user probably sits-back from the computer.
Did the article mention that the PC makers also offer Win 7 ?
Basically, a Win 8 sale is accounted but the PC maker uses downgrade rights and installs Win 7
Or simply set 10% of the dollar deposit in a forex account. Then go sell-side the USD/ZAR and get the interest rate rolls. But flatten the position as needed to avoid a rising dollar
The question is, will smartphones based on Intel processors generally and widely come-in at less cost than the iPhone and Galaxy ?
If so then whoops-there-it-is, the same pattern whereby the PC clone wiped-out the Mac
The gold miners are up today because of this idea that they have costs in foreign currencies but revenue and income in dollars. And now the dollar is up.
But that doesn't work if they hedged they're costs by holding foreign currency positions.
Here's what I would do:
Set a large unleveraged cash deposit in the rand and draw 5% interest. Then set 10% of the cash in a forex account such that the foreign currency deposit can be hedged at 10 to 1. Finally, click the foreign currency hedge on or off as needed